SYDNEY - Macquarie Bank Ltd, Australia's largest investment bank, has bought a 10 per cent stake in British businessman Richard Branson's financial services firm Virgin Money Australia to help fund its expansion.
Macquarie said it would have representation on the board of Virgin Money Australia and would also provide funding
to the firm to develop and market new financial products.
"The bank has the opportunity to increase its interest in Virgin Money Australia should the initial investment prove successful," Macquarie said today.
Macquarie did not disclose how much it paid for the 10 per cent stake or how much funding it would provide to the firm.
"The investment in Virgin Money Australia is part of the bank's strategy of building strong business alliances with key third-party financial organisations," Macquarie Deputy Managing Director Richard Sheppard said.
"This partnership will build on the existing superannuation relationship and capabilities of both parties and will provide customers with a range of first class retail products and services."
Virgin Money Australia's low-fee pension product, Virgin Super, invests in funds managed by Macquarie. Virgin Money Australia also distributes branded credit cards through Westpac Banking Corp, Australia's fourth-largest retail bank.
Shares in Macquarie were up 0.3 per cent at A$67.65 ($73.89) by late morning in a broader market up 0.4 per cent. The stock has outperformed the benchmark S&P/ASX 200 Index by about 30 percentage points so far this calendar year.
- REUTERS
